In a statement released today the Bank of Portugal announced that it had ordered BES to put in place new executives, who were due to take over at the end of this month.

European and US stocks tumbled on Thursday as investors feared that both BES, and its controlling stakeholder, Espirito Santo Financial Group (ESFG), were not healthy.

ESFG missed a debt payment, which saw a sell-off in the shares and bonds of both the parent company and the Portuguese lender. The International Monetary Fund said last Thursday that the Bank of Portugal acknowledged "pockets of vulnerability" in the Portuguese banking system that warranted corrective measures and supervision.

Today's changes to management follow "the resignations presented by members of the management board of BES", said the central bank. The bank's new executives will still need to be confirmed at BES' 31 July shareholder meeting.